ASCENDAS Real Estate Investment Trust (Reit) has accepted a letter of offer from its controlling unitholder JTC Corp for a 30-year leasehold interest for land at one-north that will be developed into a build-to-suit (BTS) facility.
The land premium is S$84 million, and the 30-year lease commences 8 April 2019.
On Jan 30, Ascendas Reit had announched that it was building the S$181.2 million development which would serve as ride hailing company Grab's headquarters.
The development will be situated on a land area of approximately 11,435 square metres, which was valued by CBRE at S$84.1 million and S$88.6 million by Savills Valuation and Professional Services.
The BTS will consist of two tower blocks with a gross floor area of about 42,310 square metres and is expected to be completed in the fourth quarter of 2020.
The development will incorporate greenery on ground and mid-level sky terraces that are integrated with communal spaces and public pedestrian thoroughfares, while bicycle parking, lockers and shower facilities will be provided to encourage Grab's employees to take up cycling as a mode of commuting. Other green features will include the use of recycled building materials and energy efficient low emissive glass façade to reduce solar heat gain.
Upon completion, Ascendas Reit will lease the development to Grab for 11 years with an option to renew for an additional five years. Annual rental escalations will apply throughout the term of the lease. Including Grab's lease, the weighted average lease to expiry of Ascendas Reit's Singapore portfolio would have improved to 4 years from 3.9 years. Meanwhile, the development is expected to generate a net property yield of about 6.4 per cent.